Any divervse portfolio should include commodities, says John Love, president and CEO, USCF, at the 2020 Inside ETFs conference.
"Commodities are an asset class that smooths out your returns," Love said. "The traditional portfolio is equities, bonds. The next major thing that people tend to look at over the years—after cash—is commodities."
He said commodities fit into the same bucket of alternative investments as real estate and private equity, but they provide the benefit of equity-like returns over the long-term and equity-like volatility.
"We think it plays a vital role," he said. "When the equity market changes, commodities over the long haul are something that should balance things out."